Hubbis | 2017-03-15
Returning Brits to be taxed on worldwide income from April 2017
Following the UK Budget last week, the reform of the non-domicile rules, previously announced in 2015, are destined to go ahead from 6 April 2017.
According to Buzzacott, the chartered accountants, the new tax regime will impact individuals born in the UK with a UK domicile of origin, who have subsequently left the UK and acquired a foreign domicile of choice (such as in Hong Kong or Singapore) and who now wish to return to live in the UK.
These individuals will no longer be able to benefit from the remittance basis of taxation, and will instead be liable to UK tax on their worldwide income, and capital gains and inheritance tax on their worldwide estate, said the firm.
The big concern is for any offshore trusts or companies these individuals have set up whilst living abroad. Buzzacott said that all trust and company income and capital gains will be taxed on them each year whilst they are a UK resident as if they had realised them personally.
In addition, subject to a 12-month grace period, any trust for which the individual is a settlor and beneficiary will fall into the UK inheritance tax net for as long as the settlor remains UK resident.
Article first seen on Hubbis online